China: Market extends winning streak to third day

Mainland China share market finished session in positive territory on Wednesday, 21 February 2024, registering third sessions of consecutive rally after the Lunar Chinese New Year holiday, with shares in automobile and real estate companies leading gains, as investors cheer policymakers' efforts to boost market confidence and prop up the economy.

The People's Bank of China cut the five-year loan prime rate (LPR) by 25 basis points to 3.95% on Tuesday, as authorities sought to prop up the struggling property market and broader economy.

At close of trade, the benchmark Shanghai Composite index increased 0.97%, or 28.23 points, to 2,950.96. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.03%, or 16.55 points, to 1,629.01. The blue-chip CSI300 index surged 1.35%, or 46.02 points, to 3,456.87.

CURRENCY NEWS: China's yuan closed ear three-week high against the dollar on Wednesday, with gains in the nation's blue-chip stock index further helping to underpin sentiment. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1030 per dollar, 38 pips firmer than the previous fix of 7.1068. In the spot market, the onshore yuan CNY=CFXS yuan was changing hands at 7.1816 by midday, 109 pips firmer than the previous late session close.

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